AKBL announced earnings today at PKR 6.8bn (EPS:PKR 5.40) for 9MCY21 depicting a YoY downturn of 17% while posting a 99% QoQ increase (3QCY21 EPS: PKR 2.13). Earnings posted a sequential jump due to lower provisioning and improved net interest income. No dividend was announced.
· Net Interest Income of the bank settled at PKR 24.5bn during 9MCY21, improving 9% YoY while increasing 7% QoQ, as interest earned improved by 15% QoQ during 3QCY21.
· NFI declined on YoY as well as QoQ basis by 6% and 2%, respectively. The YoY decline was mainly due to a 66% drop in capital gains during 9MCY21.
· There was decline in provisioning this quarter (PKR 1.3bn), down 57% QoQ. However, the total provisioning during 9MCY21 was significantly up at PKR 4.1bn, marking a 210% YoY jump.
· OPEX for the bank was up 7% YoY in 9MCY21, flattish QoQ with a meagre 1% increase. Cost/Income ratio clocked in at 64% during 9MCY21, which was around 55% SPLY.
· Effective tax rate settled at 39% during 9MCY21.
Courtesy – AHL Research